SAN ANTONIO, TEXAS -- American TeleSource International, Inc. "ATSI" (AMEX: AI) ATSI announced today that its wholly owned subsidiary, GlobalSCAPE, Inc., has filed an Information Statement and Form 10 Registration Statement with the Securities and Exchange Commission in connection with the planned distribution of approximately 27% of ATSI's ownership in GlobalSCAPE to ATSI's stockholders. GlobalSCAPE, Inc. (www.globalscape.com), is a leader in the development, marketing, distribution and support of award winning Internet-based software in a variety of categories including file management, multimedia utilities and Web site development tools targeting both business and consumer markets.

ATSI stockholders will receive a portion of ATSI's 12,920,000 share ownership in GlobalSCAPE via a distribution made pro rata one share of GlobalSCAPE Common Stock for each twenty shares of ATSI Common Stock held as of the Record Date. The Record Date, which must still be set by ATSI's Board of Directors, is expected to be on or before July 14, 2000. A public announcement of the Record Date will be made at least ten days prior to the Record Date. Subject to the effectiveness of the Form 10, the Company expects the distribution of shares to be made within three weeks after the Record Date.

Although a registration statement is being filed in connection with the shares to be issued in the distribution, GlobalSCAPE's bylaws contain provisions restricting their transferability until 180 days after GlobalSCAPE completes an initial public offering, and its shares are listed on an exchange or quoted on an automatic quotation system. ATSI does not intend to list the GlobalSCAPE shares for trading on an exchange or automatic quotation system prior to an initial public offering, if one is consummated.

H. Douglas Saathoff, ATSI's Chief Financial Officer, stated, "The Form 10 is a requirement for the distribution to take place, which is the first step in a plan designed to enhance stockholder value, raise funds necessary for GlobalSCAPE to accelerate its growth, and enhance ATSI's financial position. Subsequent to the distribution, GlobalSCAPE intends to position itself for a future public offering as appropriate business and market conditions allow. We have reserved the symbol "CUTE" for a potential listing on the NASDAQ National Market System."

Mr. Saathoff continued, "We feel that a distribution in the near term is in the best interest of our stockholders because it gives them the opportunity to receive direct ownership in GlobalSCAPE at a lower tax basis, and enhances their ability to participate directly in any future successes that GlobalSCAPE may enjoy in the public or private markets. The transfer restrictions are based upon our desire to maximize the potential for a successful underwriting in the future, and it is common for an underwriter to require that existing stockholders restrict the transfer of their shares for a period of 180 days following an initial public offering. Stockholders in ATSI will also benefit indirectly from any future successes that GlobalSCAPE may enjoy through ATSI's retained ownership position in GlobalSCAPE."

Arthur L. Smith, ATSI's Chairman and CEO, commented, "The distribution of GlobalSCAPE stock to the stockholders of ATSI will allow ATSI and GlobalSCAPE to focus on growing their respective businesses to compete in two of today's hottest industries, telecommunications and the Internet. The distribution is the first step in separating the businesses of ATSI and GlobalSCAPE in a manner that reflects their different missions and different financial, investment and operating characteristics so that each can pursue business strategies and objectives appropriate for its specific business. The separation will permit our investors, customers, and other constituencies to evaluate the respective businesses of ATSI and GlobalSCAPE on a stand-alone basis and will give ATSI stockholders of record the opportunity to participate directly in the potential of two separate companies, rather than just one."

American TeleSource International, Inc. is an emerging international carrier serving certain niche markets in and between Latin America and the United States. The Company's borderless strategy includes the deployment of a "next generation" network for more efficient and cost effective service offerings of domestic and international voice and data. ATSI has clear advantages over the competition through its corporate framework consisting of unique licenses, interconnection and service agreements, network footprint, and extensive retail distribution.

This news release contains "forward looking statements" (For example, "The Form 10 is a requirement for the distribution to take place, which is the first step in a plan designed to enhance stockholder value, raise funds necessary for GlobalSCAPE to accelerate its growth, and enhance ATSI's financial position. Subsequent to the distribution, GlobalSCAPE intends to position itself for a future public offering as appropriate business and market conditions allow. We have reserved the symbol "CUTE" for a potential listing on the NASDAQ National Market System. Stockholders in ATSI will also benefit indirectly from any future successes that GlobalSCAPE may enjoy through ATSI's retained ownership position in GlobalSCAPE The separation will permit our investors, customers, and other constituencies to evaluate the respective businesses of ATSI and GlobalSCAPE on a stand-alone basis and will give ATSI stockholders of record the opportunity to participate directly in the potential of two separate companies, rather than just one.") which are statements that describe management's beliefs and expectations about the future. We have identified forward looking statements by using words such as "expect," "may" "believe," and "should." Although we believe our expectations are reasonable, our operations involve a number of risks and uncertainties, and these statements may turn out not to be true. Risks that could cause these statements not to be true include loss of key customers, inability to obtain additional capital, inability to make payments to suppliers and lenders on time, dilution of our Common Stock, equipment failures leading to service interruptions, failure to achieve profitability, and other Risk Factors discussed in filings made by the Company with the SEC.